Investec Says Nine-Month Operating Income Is Little Changed

Jan. 31 (Bloomberg) -- Investec Plc, the owner of a bank
and money manager in South Africa and the U.K., said operating
income rose 1 percent in the nine months through December.

Operating profit before goodwill, acquired intangibles,
non-operating items and taxation as well as non-controlling
interests rose 5 percent from a year ago, the Johannesburg- and
London-based company said in a statement today without giving
details. Operating costs increased 4 percent in that period.

Asset management experienced net inflows as did the wealth
and investment unit, while the South African banking business
reported a “solid increase in operating profit in rand terms,”
the company said. The Australian banking unit performed
“significantly ahead of the prior period” as bad debts fell
while the U.K. operations “reported results behind the prior
period largely due to lower investment income earned,” it said.

Investec was hurt by the U.K.’s recession, Europe’s
sovereign debt crisis and a weakening rand. While the South
African economy slowed last year, it averted a recession and
banks have not needed government support. Investec has been
focused on boosting return on equity, eliminating duplication
and taking on more clients.

The shares closed at 64.59 rand, down 2.7 percent, in
Johannesburg. That’s the biggest drop in four months.